TY  - BOOK
AU  - Kekre,Rohan
AU  - Lenel,Moritz
ED  - National Bureau of Economic Research.
TI  - The Flight to Safety and International Risk Sharing
T2  - NBER working paper series
PY  - 2021///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - September 2021; Hardcopy version available to institutional subscribers
N2  - We study a business cycle model of the international monetary system featuring a time-varying demand for safe dollar bonds, greater risk-bearing capacity in the U.S. than the rest of the world, and nominal rigidities.  A flight to safety generates a dollar appreciation and decline in global output.  Dollar bonds thus command a negative risk premium and the U.S. holds a levered portfolio of capital financed in dollars.  We quantify the effects of safety shocks and heterogeneity in risk-bearing capacity for global macroeconomic volatility; U.S. external adjustment; and the international transmission of monetary and fiscal policies, including dollar swap lines
UR  - https://www.nber.org/papers/w29238
UR  - http://dx.doi.org/10.3386/w29238
ER  -